Found this first in TBT.
TECO to dump coal business
TECO Energy is exiting the coal
business, an industry rapidly losing its environmental appeal as a
domestic provider of fuel for power plants.
The Tampa power company and
parent of Tampa Electric and two gas companies, said it has closed the
sale of its coal-mining subsidiary, TECO Coal LLC, to Cambrian Coal
Corp., a Booth Energy company. How much did it sell for? Possibly
nothing. Bloomberg News coverage states Booth Energy will pay nothing up
front for TECO's coal assets but could pay $60 million later - if coal
hits a certain price, which Bloomberg suggests is unlikely given coal's
plummeting value. TECO Energy also said that while most TECO Coal
liabilities were transferred in the transaction, TECO Energy will retain
personnel liabilities including pension and severance agreements. TECO
Energy itself is being acquired for $10.4 billion in equity and debt by
Canadian power company Emera.
Then the following:
NEW YORK — Canadian energy and services company Emera said Friday
it will buy Teco Energy, an electric and gas utility that does business
in Florida and New Mexico, for about $6.48 billion.
Emera Inc. said it will pay $27.55 per share of Teco Energy, a premium of about 31 percent over Friday’s closing stock price. The companies valued the deal at $10.4 billion including debt. Shares of Teco Energy Inc. climbed 24 percent to $26.13 in aftermarket trading.
Emera, based in Halifax, Nova Scotia, has investments through the Northeastern U.S. and Canada as well as the Caribbean. It had almost $3 billion in revenue in 2014.
Emera CEO Chris Huskilson said Teco, which is based in Tampa, Fla., is an “ideal match” for his company.
The companies expect to complete the sale by mid-2016. They said Emera will continue Teco’s efforts to sell its coal business and plans to complete that sale by the time its acquisition of Teco closes.
Looks like TECO is dumping more than just coal.
I wouldn't be surprise if our hometown utility will be the next to be bought out.
Emera Inc. said it will pay $27.55 per share of Teco Energy, a premium of about 31 percent over Friday’s closing stock price. The companies valued the deal at $10.4 billion including debt. Shares of Teco Energy Inc. climbed 24 percent to $26.13 in aftermarket trading.
Emera, based in Halifax, Nova Scotia, has investments through the Northeastern U.S. and Canada as well as the Caribbean. It had almost $3 billion in revenue in 2014.
Emera CEO Chris Huskilson said Teco, which is based in Tampa, Fla., is an “ideal match” for his company.
The companies expect to complete the sale by mid-2016. They said Emera will continue Teco’s efforts to sell its coal business and plans to complete that sale by the time its acquisition of Teco closes.
Looks like TECO is dumping more than just coal.
I wouldn't be surprise if our hometown utility will be the next to be bought out.
No comments:
Post a Comment